Ignorance wasn't bliss

jangor_2

I recently completed on the sale of my property. On the day of completion three letters arrived from my bank advising I was overdrawn and had been charged £35 x 3. I rushed to the bank and was advised once a solicitor requests a completion statement a cap is put on any overdraft facilities. The first completion statement was requested some three weeks prior to completion date. (The bank advised that I should have been consulted as to whether I agreed to the capping, to allow me time to make alternative arrangements but sadly I was not advised of this.) As there were various delays and I lost the property I had proposed to purchase the completion date was changed and the solicitor requested further completion statements. As I understand it once my overdraft was capped any monies spent over this sum would not be met and an admin fee charged to my account. On the day of completion the solicitor was given the completion sum for the overdraft which she paid but the bank disagreed and took £1000 approx above this sum. They then charged me two further interest payments on the day of completion - which they are still investigating themselves as they cannot explain the reason for these deductions from my account. To further complicate matters, while I was in the bank, I rang the solicitor to discuss the situation and she requested the bank details so that she could electronically transfer the equity from the sale into my account. The bank gave me the details and I relayed them to the solicitor. When I arrived home the solicitor rang me to say she had attempted to make a CHAPS payment but was unable to (apparently for this type of payment the bank had given incorrect details) and she therefore would be sending me a cheque. This I duly received but this now has to clear before I can transfer it to a higher rate account, thus I appear to have lost approx 10 days or so of interest on this sum. Sorry about the saga but I just found the whole situation totally confusing. The bank is trying to have the admin charges refunded to me but still cannot explain why so many deductions have been made from my account.

thesaint

I know. !!!!!!?

silvercar

I rushed to the bank and was advised once a solicitor requests a completion statement a cap is put on any overdraft facilities.

I don't understand this. Are you saying that whenever anyone completes on a house sale their overdraft is frozen??? Just doesn't make sense.

I lost the property I had proposed to purchase the completion date was changed and the solicitor requested further completion statements.

Had you exchanged? why would a cap on your overdraft force you to forego the completion of your house sale?

The bank gave me the details and I relayed them to the solicitor. When I arrived home the solicitor rang me to say she had attempted to make a CHAPS payment but was unable to (apparently for this type of payment the bank had given incorrect details)

All that is needed is either sort code and account number or IBAN number; no special info for CHAPS.

Snow_Dog

jangor wrote: »

I recently completed on the sale of my property. On the day of completion three letters arrived from my bank advising I was overdrawn and had been charged £35 x 3. I rushed to the bank and was advised once a solicitor requests a completion statement a cap is put on any overdraft facilities. The first completion statement was requested some three weeks prior to completion date. (The bank advised that I should have been consulted as to whether I agreed to the capping, to allow me time to make alternative arrangements but sadly I was not advised of this.) As there were various delays and I lost the property I had proposed to purchase the completion date was changed and the solicitor requested further completion statements. As I understand it once my overdraft was capped any monies spent over this sum would not be met and an admin fee charged to my account. On the day of completion the solicitor was given the completion sum for the overdraft which she paid but the bank disagreed and took £1000 approx above this sum. They then charged me two further interest payments on the day of completion - which they are still investigating themselves as they cannot explain the reason for these deductions from my account. To further complicate matters, while I was in the bank, I rang the solicitor to discuss the situation and she requested the bank details so that she could electronically transfer the equity from the sale into my account. The bank gave me the details and I relayed them to the solicitor. When I arrived home the solicitor rang me to say she had attempted to make a CHAPS payment but was unable to (apparently for this type of payment the bank had given incorrect details) and she therefore would be sending me a cheque. This I duly received but this now has to clear before I can transfer it to a higher rate account, thus I appear to have lost approx 10 days or so of interest on this sum. Sorry about the saga but I just found the whole situation totally confusing. The bank is trying to have the admin charges refunded to me but still cannot explain why so many deductions have been made from my account.

Its always good to break up your posts into readable paragraphs, makes them so much easier to read.:o

Tweetinat

silvercar wrote: »

Quote:
I rushed to the bank and was advised once a solicitor requests a completion statement a cap is put on any overdraft facilities.
I don't understand this. Are you saying that whenever anyone completes on a house sale their overdraft is frozen??? Just doesn't make sense.

The Woolwich provide a current account with an "overdraft" facuility which is linked to your mortgage. Basically it allows you to have a higher overdraft than you might normally be eligble for and you're charged at the mortgage rate. When your solictor requests a completion statement, they stop you from using this facility, and *should* send you a letter outlining this.

I don't know if the OP is a Woolwich customer, but I was, and received such a letter when I recently sold my property. He must have a similar account, maybe with another lender.

Debt_Free_Chick

Agree with Tweetinat

It sounds like you had an offset mortgage, so you weren't just closing the mortgage, you were closing the entire account.